Personal loans offered by Canara bank can be taken with interest rates starting from 11% p.a.
There are two different types of personal loan products offered by Canara Bank. These loans are mainly intended for customers to take care of their immediate financial requirements. Let’s compare the interest rate and other features of these loans.
|Loan Type||Interest rate||Loan amount||Benefits|
|Canara Budget||With salary tie-up: 13% (MCLR + 4.30%) Without salary tie-up: 14% (MCLR + 5.30%) BSNL employees: 11% (MCLR + 2.30%)||A maximum of Rs.3 lakh or 6 times the monthly gross income (whichever is less) is offered as loan under this scheme.||Minimal documentation with loan sanctioning within just a few weeks|
|Canara Teachers Loan||12.65% (MCRL + 3.95%)||A maximum loan amount of Rs.3 lakh or 10 times the gross monthly income (whichever is less) is available under this scheme.||Minimal documentation with loan sanctioning within just a few weeks|
The processing fees associated with Canara Bank personal loans are given as follows:
|Canara Budget||0.5% of the loan amount must be paid as processing fees. This is subject to a minimum of Rs.1,000 and maximum of Rs.5,000.|
|Canara Teachers Loan||1% of the loan amount is charged as processing fee under this scheme. This is subject to a minimum of Rs.50.|
The eligibility criteria for both loan products offered by Canara Bank personal loans differ slightly from each other. They are given as follows:
Canara Teachers Loan
If you are applying for a personal loan from Canara Bank, you need to submit the following documents:
Let’s assume that you take a personal loan from Canara Bank for Rs.1 lakh. The interest rate applicable to this loan is 13% p.a. for a repayment tenure of 1 year. The EMI information and repayment schedule for the loan is given as follows:
|Months||Principal||Interest||EMI (principal + interest)||Balance||Percentage of loan paid to date|
|Fees and charges||Canara Bank Personal Loan||Bank of Baroda Personal Loan||Citibank Personal Loan||Aditya Birla Capital|
|Interest rate||11% p.a. onwards (for BSNL employees)||11.65% p.a. onwards||10.99% p.a. onwards||14% p.a. onwards|
|Processing fee||0.5% + GST||2% + GST||0.25% to 3.00% + GST||2% + GST|
|Foreclosure charges||Contact the bank for details||N/A||4% of the principal outstanding||3% of the outstanding loan amount|
|Late payment fee||Contact the bank for details||2% of the overdue amount per month||Contact the bank for details||2% of the overdue amount per month|
Canara Bank is one of the renowned public sector banks in India. The bank has different types of loan products to help customers who need financing for various purposes. The personal loan products offered by the bank are designed to provide instant relief against a person’s domestic needs. The money obtained from a Canara Bank personal loan could be used for anything ranging from financing of your home renovation to taking care of an unexpected medical expense. The personal loan offered by the bank starts with an interest rate of 13% for non-government employees.
|Canara Bank Home Improvement Loan||Canara Bank Loan for Senior Citizen||Canara Bank Loan Against Property|
No. The bank does not impose any restrictions on how you spend the loan amount. You may use it for any domestic or personal needs including wedding, higher education, or urgent medical expenses, etc.
If you apply for the loan through Bankbazaar, you can get notifications in the form of SMS and email. You may also use the Bankbazaar mobile app to keep track of your application.
The current one-year marginal cost of funds-based lending rate (MCLR) of Canara Bank is 8.70% with effect from 7 October 2018. The bank may modify this rate based on changes in market conditions. The interest rates for various loan products are calculated based on this rate. For instance, the interest rate for Teachers Loan is 12.65%, which is nothing but one-year MCLR + 3.95%.
The maximum repayment tenure for the Canara Budget loan is 60 months. For Canara Teachers Loan, the maximum repayment tenure is 48 months.
In the case of unsecured personal loans, there is no collateral with which the bank can recover the loan amount in case of a default. This is the reason why the personal loans offered by Canara Bank require co-obligation. This co-obligation must be provided by a suitable individual and it should be equivalent to the loan amount.
Canara Bank offers a maximum loan amount of Rs.3 lakh under both its personal loan schemes. However, for certain cases, the bank may consider a higher quantum if the applicant is a valued customer. You may visit the bank directly to enquire about the higher quantum of personal loan available.
No. Canara Bank personal loans are offered only for salaried employees of various government and non-government institutions. You must have regular income and provide proof of employment before the loan application can be processed by the bank. If your parents are salaried employees, you may ask them to take a personal loan.
The interest rates for personal loans offered by Canara Bank are fixed. It is not possible to get a discount on these interest rates for any reason. Special interest rates are provided only for BSNL employees.
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